Provisional Tax Assessment Income Tax

The tax authorities recently sent the preliminary income tax/national insurance contributions assessments for the fiscal year 2024. These assessments are based on past data and may therefore be incorrect. You may not have received a preliminary assessment or you may have received an incorrect preliminary assessment. We therefore ask your attention to the following.

Preliminary assessment too low?
If you pay too little tax on the preliminary assessment during the year or receive a refund that is too high, we advise you to report a change to the preliminary assessment to the tax authorities. This prevents you from having to pay a lot of tax + interest afterwards. The tax interest rate is 7.5% on the additional tax to be paid. We can adjust the preliminary assessment for you.

No preliminary assessment or preliminary refund yet?
Did you not receive a preliminary assessment yet, but do you have to pay tax? Or are you entitled to a tax refund? You do not have to wait for the final assessment to be imposed after filing your tax return. We can apply for a preliminary assessment or a preliminary refund on your behalf. You will then pay a monthly amount of tax or in the event of a refund, you will receive a monthly amount deposited into your account. These amounts are taken into account in the final tax calculation.

What is the preliminary assessment based on?
The preliminary assessment for 2024 is based by the tax authorities on your past tax situation. In the meantime, changes may have occurred that affect the amount of your (preliminary) assessment or refund.

Examples of changes that may affect the tax due include:

• a higher or lower income/profit;
• changed family situation (due to cohabitation, marriage, divorce or birth);
• the purchase or sale of an owner-occupied home;
• a change in the mortgage interest due;
• the cancellation of a certain deduction (such as alimony, specific healthcare costs or gifts);
• a significant increase or decrease in your private wealth (e.g. due to an inheritance or the change in value of securities);

Finally
In order to avoid having to pay or refund a lot of tax (including 7.5% tax interest) at the end of the fiscal year when the final tax calculation ends, it is advisable to report the changes to the tax authorities in the meantime.

If you have any questions regarding the above or would like to report your changes, please contact your contact person within FSV.

In case you have already been in contact about the above, you do not have to respond to this post, unless your situation changes during the year.